China Property Woes Deepen With Vanke Slump, Country Garden Halt
One of China’s biggest property firms delayed its earnings report while another posted a record profit decline as the nation’s real estate crisis shows no signs of easing.
Latest Videos
The information you requested is not available at this time, please check back again soon.
One of China’s biggest property firms delayed its earnings report while another posted a record profit decline as the nation’s real estate crisis shows no signs of easing.
The owners of Saks Fifth Avenue are in talks to raise financing to bolster the cash portion of an offer to buy competitor Neiman Marcus, according to people familiar with the matter, moving two of America’s biggest high-end department stores closer to a deal after years of on-and-off courtship.
Jefferies Financial Group Inc.’s revenue jump — due to strong capital markets and rebounding investment banking — bodes well for the bigger banks due to report in weeks to come.
Blackstone Inc. sold 48 warehouses in Southern California to Rexford Industrial Realty Inc. for $1 billion.
Plunging demand for commodity offices in the US is driving growth for the highest-quality properties, a Morgan Stanley executive said.
Jul 6, 2020
Bloomberg News
,(Bloomberg) -- One of Canada’s biggest non-bank commercial mortgage lenders has launched a new fund to invest in debt that has been mispriced by the coronavirus pandemic.
Vancouver-based Trez Capital has closed the first round of financing on its new high-yield fund but will remain open for investments until Dec. 31 with plans to attract a maximum of C$100 million ($74 million) in capital.
“These are first mortgages, loans that are secure but, because of the current environment, offer higher yields than what we could earn pre-Covid,” Daniel Marchand, senior vice president at Trez said in Toronto.“Lenders have pulled back on their borrowing activities and this fund allows our investors to capture the additional spread.”
The firm is keeping the fund small because it expects the market to normalize by the end of this year or early spring, said Marchand, who oversees capital raising efforts at Trez.
“During the global financial crisis, we were able to capture additional spread -- higher yields on quality deals -- for only about a year. We would expect a similar experience in this crisis,” he said.
The new fund will target net returns of more than 10% per year in a portfolio of senior ranking mortgages. It will focus on real estate projects in U.S. markets that have higher-than-average population and economic growth. The first investment will be for single-family lot development financings in Texas, a state experiencing job growth and strong demand for affordable housing.
Trez is now allowing limited redemptions in two of its four open-ended funds it had gated in March -- Trez Capital Prime Trust and Trez Capital Yield Trust. Back then, a record number of credit funds across the world were forced to halt redemptions to preserve liquidity.
That had impacted four of Trez‘s funds managing approximately C$2.6 billion. Despite the Covid-19 disruption in the commercial real estate industry, it has maintained distributions across all funds with no delays or reductions.
The firm manages C$3.8 billion that’s split between the U.S. and Canada. It expects to make an announcement in the coming weeks for the other two funds that are still shut, Marchand said.
“We want to reopen progressively and deliberately,” he explained. “Although we are being conservative in our approach, it’s that risk culture that’s kept us solid through this, and previous crises.”
For its Prime Trust fund, Trez will allow total redemptions of C$3 million per month and up to C$5 million for the Yield Trust. It will revisit these limits by the end of August, he said.
©2020 Bloomberg L.P.